Coordination of Hydro Units With Wind Power Generation Using Interval Optimization

The coordination of wind power and hydro power is an effective way for generating companies to enhance the ability of wind power dispatch and to avoid imbalance charges. However, specifying the probability distributions of random variables can be challenging for decision makers (DMs). This paper proposes a bidding strategy for wind farms and hydro stations in a generating company using interval optimization. Pessimistic preference ordering and DMs´ degrees of pessimism are also adopted in the optimization to compare interval numbers. Variations in wind power, the day-ahead energy price, and the intrahour energy price are then considered and represented by interval numbers instead of probability distributions. Compared with stochastic optimization, interval optimization does not need an exact probability distribution for the random variables. Moreover, it can reduce computational complexity as well as determine and optimize profit intervals, as illustrated in the numerical example presented herein.